This course introduces students to modern tools and techniques designed to generate performance measures used for decision-making, management and control purposes. Accounting based performance measures are used for a variety of managerial decisions such as product pricing, and profitability analysis (e.g., activity-based costing for customer lifetime value). This course further illustrates how performance measures are integrated into incentive systems so as to align the objectives of (division) managers with those of the shareholders. Key building blocks of such incentive systems are cost allocations, transfer pricing and compensation schemes. At a time where performance measurement is one of the fastest-growth areas for consulting firms, this course illustrates the strengths and weaknesses of commonly-used performance metrics, e.g., Economic Value Added (EVA), Balanced Scorecard. It serves as an important background for a variety of electives in management and accounting as well as for consulting-related courses.
Concepts taught in this course:
Paul M. Montrone Professor of Private Enterprise in the Faculty of Business
Tim Baldenius re-joined Columbia Business School's faculty in 2017. He teaches an elective course on performance measurement as well as Ph.D. seminars on managerial accounting and applied contract theory.
His primary research interests include managerial accounting, performance measurement, and corporate governance. His work has been published in leading accounting, economics, and finance journals.
Prior to joining Columbia, Tim...